The secret to happiness? Financial planning - Money - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

The secret to happiness? Financial planning

The secret to happiness? Financial planning

Category: Money

Updated: 16/06/2010
First Published: 16/06/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
For years, it has been said that money can't make you happy, but new research suggests that financial planning can.

A strong link has been established between financial behaviour and self esteem, a report by Aviva in conjunction with a leading psychologist at City University, London, has found.

It found that those with sensible financial plans in place are happier overall and have a stronger sense of financial wellbeing, regardless of the salary they earn.

In fact, it was found that good health is seen as twice as important as earning more money, with 85% and 42% saying they considered the factors to be crucial to them.

Figures show that 85% of Britons with high self esteem also feel in control of their finances, and nearly half said they were happy about their financial situation.

By contrast, 70% of those with low self esteem said they don't feel as if they have control over their financial situation, and none claimed to feel happy about the state of their finances.

It was also found that almost seven in ten (68%) with high self esteem are good at planning their day-to-day finances, while a similar proportion have set themselves defined, long term financial goals.

In comparison, some 76% of people with poor self esteem fail to plan for the long term and 69% worry about managing their money on a daily basis.

Commenting on the study, Dr. Malcolm Cross, Reader in Psychology at City University London said: "It's a widely held belief that financial stress has an impact on overall health and happiness.

"Through this study, we now know that there is a direct correlation between money and self esteem, and one that is unrelated to salary, employment status or age."

If you would like to swot up on how to improve you day-to-day financial management, feel free to peruse our money saving tips section, which is crammed full of handy pointers.

If you feel you have lost control, looking for debt help may be your best course of action.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

How much could it cost to get fit in 2017?

We’re almost a week into 2017, and hopefully, many of those New Year’s Resolutions are still going strong. Figures suggest that the most popular resolution is to achieve a healthier lifestyle, but just how much could that ambition set you back?

Over 1 million fall victim to online scams

We all like to think that we’re pretty savvy when it comes to spotting financial fraudsters, yet the rise of online scammers means it can be all-too easy to be hoodwinked - and unfortunately, huge numbers are falling victim.

Financial New Year’s Resolutions

It's that time of the year again: the presents have been unwrapped and the Christmas jumper folded away, and now all that's left is the hangover from the festivities. It's time to sit down and think hard about what you would like to change, and how.
 
Close